SLM Partners’ US organic farmland investments deliver above-average financial performance
The case study has been published in SLM Partners’ sixth impact report, released today
(London, 19th May) – SLM Partners, the $600 million natural real assets manager with 100% of land under regenerative management, is today publishing its sixth impact report featuring a case study of its first US Midwest organic farming investments. Launched in 2019 with a capital commitment from Spring Point Partners, the recent exit of this pilot programme has delivered a Gross Internal Rate of Return (IRR) of over 10% – exceeding the NCREIF Total Cropland Index and the NCREIF Annual Cropland Index for this period – as well as generating positive environmental and social outcomes.
Between 2019 and 2020, SLM Partners acquired four farms totalling 500 acres across Illinois and Ohio and partnered with three local organic farmers. By 2022, all farms achieved organic certification. Since then, the farmers have expanded their operations and improved profitability, while the value of the land has risen. Over the last two years, SLM Partners managed the sale of these farms as part of the planned winding up of the pilot programme. All farms will continue to be farmed organically, and two of the farmers exercised their rights to purchase their farms, bringing the land under their long-term ownership. Following a full exit, the investor realised a Gross IRR of 10.1% (before management fees and costs).
SLM Partners made the land available to the farmers through 10-year flexible leases, with below-market rents during the conversion period, followed by profit-sharing after organic certification. Transitioning away from chemical inputs and investing in soil health takes time, and it can entail two to three years of losses before breaking even. As most farmland leases in the US Midwest are one, two or three years in duration, many farmers cannot afford the risk of experimentation, and they are not incentivised to invest in soil health. SLM Partners’ model provided security for farmers to implement long-term ecological practices while sharing the financial risk of the transition to organic agriculture.
The programme also delivered environmental benefits, including improved soil health and biodiversity, through organic practices such as eliminating pesticides and synthetic fertilisers, introducing cover crops and diversifying crop rotation. The farmers grew corn, soybeans, wheat, alfalfa, pumpkin, rye, oats and popcorn and sold their products through national organic channels at premium prices. The boost to soil health can be seen on these farms after five years of organic farming practices.
Building on this pilot programme, SLM Partners was able to raise $475 million in capital commitments from institutional investors to scale its US organic farmland strategy. The firm has now made a total of 89 farmland investments and partnered with 35 local farmers across 32,000 acres in the US.
Paul McMahon, Managing Parter, SLM Partners said: “The premium organic market is relatively insulated from global commodity market shocks, for example those linked to rising synthetic fertiliser prices since the blockade of the Straits of Hormuz. Likewise, domestic demand for organic products remains strong and farmers benefit from substantial price premiums. Our strategy demonstrates how the right kind of investment structures can provide long-term access to land and support farmers through the transition to organic agriculture, making them more resilient.”
Jeff Anderson, Illinois-based Farmer partnering with SLM Partners, said: “Back in 2019, when I was looking to grow my business, the 10-year lease structure offered by SLM Partners made all the difference in the world, giving me long-term visibility that I was not able to find elsewhere. With this long-term lease, we are able to do the right thing for the farm, like switching the rotation or doing an investment the soil needs. We don’t need to use up all of the soil's nutrients this year just because we might lose access to it next year. The benefits of this are huge.”
Margot Kane, Chief Investment Officer, Spring Point Partners: “Our goal was to be catalytic: we hope the strong results generated by the farmers and SLM Partners will encourage more investors to consider sustainable, farmer-first approaches like this. The success of this pilot shows the positive role that investors can play by addressing the structural barriers that farmers face in transitioning to more regenerative farming practices. We’re encouraged to see that the farmers have grown their businesses while implementing long-term organic practices that improve their land and waterways.”
The US organic strategy has been published today as a flagship case study in SLM Partners’ 2025 Impact Report. [IR1] In 2025, SLM Partners completed 16 acquisitions in the US across specialty crops and row crops. Altogether, SLM Partners has now deployed over $355 million across the US Midwest and the West Coast in organic farmland. In Europe, SLM Partners has fully deployed their Irish forestry fund and Iberia permanent crop strategy, with over $70 million invested over the past five years. Globally, the firm manages 297,506 hectares of farmland and forestry, all under regenerative and ecological management.
In 2025, the assets managed by SLM Partners produced over 38,563 tonnes of organic cereals and oilseeds, 33,730 tonnes of fruits and nuts, 3,062 tonnes of liveweight pasture-raised beef and 27,592 m3 of PEFC-certified Irish timber. While producing food and timber, the assets also sequestered an estimated 93,683 tonnes of CO2 in trees and soils – equivalent to the electricity use of almost 20,000 homes – offsetting all emissions incurred from operating the assets.